Untitled

Gisborne Times, Volume VI, Issue 189, 17 August 1901, Page 3

CAN you knit ? Here is a rare chance. Baldwin’s 4-ply Beehivo Wools, in a few good colors, at 3s per lb. All other colors at 20 per cent, less than usui>' price.— C. Kosie & Co.

Continued from inside pages. THE PUBLIC DEBT. The gross public debt on the 81st March, I<JOO, was £47,874,452. On the 31st March, 1901. it was £19,591,245, or an increase cf £1.716,793 for the year. The net public debt on the 31st March last was £45,557,751, showing £1,627,675 of net increase for the debt during the year. Analysing the above stated increase 1 find ♦im: - i isifi.ivn nmfifiivimi conno.)tl

of new loan money has been raised for the Public 'Works Fund, consisting of £'700,000 under the Aid to Public Works and Land Settlement Act, 1899, and £200.000 under the similar Loan Act of last session. The requirements of the Advances to Settlers Office necessitated our raising £380,000 and for the purchase of estates for close settlement we obtained £219,000. To enable grants lo be made to local authorities £170,000 had to be borrowed, and further sums of £l7Bl and £2OOO for dairy industries and the Government accident insurance respectively. A sum of £17,902 was deposited in New Zealand consols, and £52,800. representing debentures for accretions, of sinking funds, were disposed of, as also £IB,OOO of 3 per cent inscribed stock. On the other hand £50,400 5 per cent debentures were paid off under the Consolidated Loan Act, 1867, and £290 under tho Nava! and Military Settlers and Volunteers Land Act, 1392. With respect to the interest upon nearly £BOO,OOO of the moneys raised last year, it is right to mention .'that no burden will be imposed upon the taxpayers, such interest being recouped according to the conditions under which the loans have been applied, so that these loans are virtually self-supporting. With regard to the balance, it is impossible to assist our settlers in developing our country without providing them with roads 'and bridges, and to provide for such expenditure it is essential that moneys shall be found out of loan. By tho same means only can our railway system be extended and effect be given to the wishes of hon. members and the people with regard to a vigorous prosecution towards the completion of our main lines. During the year £509,500 of debentures under the Government Loans to Local Bodies Act, 1886, foil due, and were renewed under the provisions of tho Consolidated Stock Act, 1884. The Bank of New Zealand having paid £500,000, the value of its preferred shares, that amount was handed over to the Public Trustee, and by him invested in a like amount of debentures under the Aid to Public Works and Land Settlement Act, 1899, held at the time by the Bank of New Zealand as security for advances made under the said loan. I observe that only two parcels of debentures will have to be provided for during the current year, namely, £250,000 under tho Aid to Public Works and Land Settlement Act, 1896, and £300,000 under the Land for Settlements Act 1894 and 1897. Tho former parcel is held by tire po3t-offfce, and can bo renewed, and the

latter was a London issue convertible into 3 per cent, inscribed stock. OUft RECI2NT £500,000 LOAN FLOTATION. Our financial advisers in London having reported unfavorably of the state of the money market, and that a very low figure would bo obtained for a 3 per cent, loan, it was determined to tap our own resources. I am pleased to say the result more than justified this action, as the recent flotation proved a complete success. The amount to bo subscribed tvas £500,000, authorised by the Aid to Public Works and Land Settlement Act, 1900. It was decided to make the issue at 4 per cent., with the price fixed at par. The loan was freely advertised throughout the colony, and also in Melbourne and Sydney. Tenders were opened on the 23rd April last, and it was found that the amount applied for was £664,300, represented by 126 tenders. The average price offered was £IOO Is 6d, the highest tender being at £lO2. the lowest £IOO 0s 6d. One hundred and twelve tenders received allotment, 62 over par, and 50 at par. The average price over par yielded £IOO 6s 7d. The allotment was made so as to embrace the largest number of small tenders, and encourage bonafide investors. No less than 98 tenders have been accepted for sums of £SOOO and under, namely, 19 tenders for £2OO and under, 91from £2OO to £4OO, 25 from £4OO to £6OO, 5 from £6OO to £BOO, 10 from £BOO to £IOOO, and 25 from £IOOO to £SOOO. The remaining 14 tenders wore in sums from £BOOO to £IOO,OOO. Australia received 29 allotments in sums ranging from £2OO to L 50,000, and with the exception of one tender at premiums from Is to 16s over par. The offer to make interest and principal payable either in Sydney, Melbourne, or London certainly induced offers for investment of moneys which we should othenviso not have received, and the action has been favorably commented on in leading financial journals. No fees for brokerage were paid ; the expenses have been very light, rather less than 3-Bth per cent., consisting only of advertising and commission to the Bank for transmission of money from Australia to Wellington. An allowance at the rate of 1-j- per cent, per annum was made to tenderers who chose to pay their final instalment before the due date. A sum of £43,312 was forwarded as a deposit by would-be investors, and of this sum £18,085 was returned to tenderers who were unsuccessful. Sixty-nine investors availed themselves of the discount allowed on payments made in full prior to due date of the last instalment, and £345,459 was received under this condition, and £223 was allowed for discount, On the 7th May last, the date of the first

instalment, £61,605 was received, and on the date of the last instalment, 4th June, £67,949 was paid in to complete the half million subscribed to complete the security required by the investors; 1658 debentures have been printed. The local emission has proved a very great success, and although ths rate is high in comparison with late issues, the expenses have been so small that I think we may consider we have got our money nearly, if not quite as cheaply, as under present conditions a 3 per cent loan could have been obtained. The currency is short, running only until Ist April, 1904.